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The Goddamn Economy: A Civilized Version - Page 22

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ahrara_
Profile Blog Joined February 2008
Afghanistan1715 Posts
January 31 2009 05:24 GMT
#421
The GINI coefficient has gone up 20 or so points since the post-war largely due to capital gains tax reductions, so that's not really helpful here.
in Afghanistan we have 20% literacy rate
oneofthem
Profile Blog Joined November 2005
Cayman Islands24199 Posts
Last Edited: 2009-01-31 06:00:01
January 31 2009 05:57 GMT
#422
On January 31 2009 11:33 ahrara_ wrote:
Show nested quote +
On January 31 2009 10:43 oneofthem wrote:
you realize that these things are easier to pass under the auspice of specific needs rather than direct transfers right. funny seeing a republican arguing for such a silly thing like that
lol republicans

i agree bro

in all seriousness, this food stamp business does not exclude other welfare. i don't see why it is a big deal.
We have fed the heart on fantasies, the heart's grown brutal from the fare, more substance in our enmities than in our love
L
Profile Blog Joined January 2008
Canada4732 Posts
January 31 2009 06:32 GMT
#423

The liberal assumption is always that government knows better than you what you need. It is also that government loves your children more than you do and will take better care of them.
So in the case of people who have proven themselves to not know what they need due to obvious mismanagement of their finances or having been sucked into an addictive, self destructive lifestyle the government's role should be that of a facilitator? Awesome! Hey, why don't we legalize crack and allow people to buy it and OD, then lay in the streets: the government can't tell them shit, they know what's best for themselves!

Instead of your bullshit all encompassing "its government spending ergo its bad" why don't you actually develop a rational as to why people at risk should get a subsidy towards doing anything they want instead of doing what they need if they are indeed going to get such assistance. What, exactly, does having 400$ specifically allocated to food do for the rest of the recipient's income? Does it mean that they can go out and buy booze with the money that's left over? Sure. Does it mean they can go out and do whatever they want with whatever other cash they have? Sure. But that comes after the family is fed. There's a human element in our market based economy:

1.People buy what they WANT to buy over what they NEED to buy.
And
2.People have requisite needs to survive.

Arguing that since 2., the want in 1. must follow encompass what they need is a gigantic fallacy, especially when one person is in control of the income, and others depend on his stream of revenue. Gambling problems, drug addictions, alcohol overuse aren't shadow problems; they spawned a massive movement which in part led to the enfranchisement of women. If you think this scenario is different now for whatever reason, you might want to look into the co-incidence of video lottery terminals (lol gambling crack) with usage after paychecks in poor areas of towns: hint hint, VLTs are concentrated in poor areas of town and their usage massively spikes after payday. Everyone has their foibles, and pretending they don't exist because everyone in society should benefit according to some pseudo-protestant merit at the expense of actually helping people is absolutely disgusting.
The number you have dialed is out of porkchops.
dybydx
Profile Blog Joined December 2007
Canada1764 Posts
January 31 2009 07:15 GMT
#424
bailout = socialism for the rich, capitalism for the poor = privatize gains, socialize losses
...from the land of imba
Savio
Profile Joined April 2008
United States1850 Posts
Last Edited: 2009-01-31 08:35:20
January 31 2009 08:19 GMT
#425
On January 31 2009 14:23 Jibba wrote:
Show nested quote +
On January 31 2009 10:22 Savio wrote:
On January 31 2009 08:43 Jibba wrote:
On January 31 2009 03:21 Savio wrote:
On January 31 2009 02:57 L wrote:
If the government had taken that $400 and just given it to the family, they would have recienved $400 worth of benefit.
Or 400$ worth of booze and drugs. Food stamps aren't designed to provide maximum economic stimulus, they're designed to put food on the table and keep kids from starving, which in turn makes them less likely to kneecap people for their daily bread, which in turn makes them less likely to suck up a gigantic wad of tax dollars sitting in prison.


The liberal assumption is always that government knows better than you what you need. It is also that government loves your children more than you do and will take better care of them.

Under these assumptions, policies like this are created.

Also, the idea the food stamp users are generally crack heads or drunks is simply false.

What? For the most part, the government tries to operate on the assumption that there are problems which the market cannot fix or for which there is no market, outliers, and tries to address them. There is no market to help poor people. There is no market to develop medicine for rare diseases instead of cancer. Up until recently, and arguably even still, there is no market to develop cleaner emissions. There was no market for a national highway system or the internet until they were actually developed.

If you took purely an economist's view, there would be no development of any sort of AIDS treatment in the 1980s because it was so costly and because breast cancer was far more widespread and was far more profitable. Instead, we took the religious right's view and decided there would be little development of any sort of AIDS treatment in the 1980s because faggots are sodomites and are going to hell. Isn't that right, Mrs. Reagan?


You are wrong about the "economists view". When there is no functioning market (as in some of the cases you listed), or if there is failure of the market (negative externalities like pollution or monopoly), then by the economists view, the government should step in. But if you were reading the whole exchange I was having when I made this comment, you would know that we were talking about food. There definitely IS a market for food.

My argument is that we should give poor people money rather than food stamps because it is more efficient (read my posts explaining the proof for this). Food stamps are an inherently inefficient program. I was not arguing that we shouldn't help the poor, but that we should give them the money that it costs to provide food stamps so there is not lost benefit.

My comment was in response to someone who said we shouldn't give them money because they might spend it on things that we (the government) don't want them to spend it on. I said that was a liberal mindset.

You might be right on this. There's obviously the risk that they'll "abuse" the money, but abuse in this case is fairly relative and the same could be said for other things. The USDA did a research report on it and their conclusion was that cash instead of stamp programs cause a downturn in food spending, hurting the agriculture industry. I haven't looked at the report, but it wouldn't surprise me if they inaccurately account for the actual amount of food purchased and I'm not sure how they came to their "15% towards non-food items" figure.

It strikes me that in writing the Welfare Reform Act (1996), the food stamp program was virtually unchanged. It'd be interesting to take a look at the votes on it and see who was trading what.

It actually come out of the House Budget committee from John Kasich (R-OH.) Every act is written by staffers and lobbyists, but it doesn't seem like he has much of a connection to agriculture, since he's mostly about finance. Maybe it was just overlooked or they had serious moral concerns.


EDIT: Seriously, I fucking hate you Savio for making me do public policy analysis on the weekend.
http://www.ers.usda.gov/publications/fanrr12/fanrr12d.pdf
http://ageconsearch.umn.edu/bitstream/31002/1/21010174.pdf
http://ideas.repec.org/a/eee/ecolet/v67y2000i1p75-85.html
http://www.jstor.org/sici?sici=0002-9092(199511)77:4<960:ATAEEO>2.0.CO;2-O&cookieSet=1
http://www.myoops.org/twocw/mit/NR/rdonlyres/Economics/14-03Intermediate-Applied-MicroeconomicsFall2000/3C72A0B4-5946-4E0C-B695-5C5C3D64F03F/0/lec71.pdf

Show nested quote +
1.6 Conclusions
1. Are recipients “distorted?” That is, do they indeed spend more on food than they other-wise would without food stamps?
Yes they are. About 7 cents is wasted on the dollar.
2. What share of food stamps are sold onto the black market? And at what price?
About 3.5 percent of food stamps are trafficked illegally.• They sell at 50 to 60 percent at face value.
3. Does cash versus in-kind have any effect on nutrition?
• Does reduce calories.• Not clear it harms nutrition. (Jibba's note: Within the lecture, he specifies that cash-out vs stamp has no effect on alcohol or cig spending)
4. How costly are cash versus in-kind programs to administer?
Cash versus EBT: EBT is about $2.16 more expensive per person per month thansending checks.• Nationally, that’s about $200 million per year.• Retailers also spend about $260 million per year to administer EBT.• Plus the cost of the underground market (harder to assess)

Other considerations:• Political economy:
— Food stamps have political support that welfare does not have because they are notviewed as a handout
— They have lobbying clout because they are administered by the Department of Agri-culture and the Farm lobby seems to believe that food stamps are ultimately spenton farm products
— and so Farmers view it as their subsidy too
— Possible that cashing out the program would help recipients in the short run, harmthem in the long run

I'm lazy so I'm going to trust these results from the Whitmore study, Whitmore being an assistant prof at Chicago's public policy school.


I never thought about the agriculture industry/lobbying aspect of food stamps before. They of course would be in support of them. All the findings you list sound about right. People value $1 of food stamps at about 50-60 cents (the market price for food stamps).

Also, I am sure that food stamps DO cause people to buy more food than they normally would since it essentially lowers the relative price of food. But one other thought I had was that your professor found that changing from stamps to money led to a reduction in calories. I would say that is a positive aspect of changing. Most Americans suffer from TOO many calories rather than too little and this is even MORE true among the poor and minorities. It seems paradoxical, but poor people take in more calories, and have a much greater relative risk for obesity, metabolic syndrome and diabetes.

Diabetes is seriously out of control in this country. I never realized just how crazy it is until I got deep into med school but it is the plague of our time.
The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. – Winston Churchill
Savio
Profile Joined April 2008
United States1850 Posts
Last Edited: 2009-01-31 08:39:44
January 31 2009 08:34 GMT
#426
On January 31 2009 15:32 L wrote:
Show nested quote +

The liberal assumption is always that government knows better than you what you need. It is also that government loves your children more than you do and will take better care of them.
So in the case of people who have proven themselves to not know what they need due to obvious mismanagement of their finances or having been sucked into an addictive, self destructive lifestyle the government's role should be that of a facilitator? Awesome! Hey, why don't we legalize crack and allow people to buy it and OD, then lay in the streets: the government can't tell them shit, they know what's best for themselves!

Instead of your bullshit all encompassing "its government spending ergo its bad" why don't you actually develop a rational as to why people at risk should get a subsidy towards doing anything they want instead of doing what they need if they are indeed going to get such assistance. What, exactly, does having 400$ specifically allocated to food do for the rest of the recipient's income? Does it mean that they can go out and buy booze with the money that's left over? Sure. Does it mean they can go out and do whatever they want with whatever other cash they have? Sure. But that comes after the family is fed. There's a human element in our market based economy:

1.People buy what they WANT to buy over what they NEED to buy.
And
2.People have requisite needs to survive.

Arguing that since 2., the want in 1. must follow encompass what they need is a gigantic fallacy, especially when one person is in control of the income, and others depend on his stream of revenue. Gambling problems, drug addictions, alcohol overuse aren't shadow problems; they spawned a massive movement which in part led to the enfranchisement of women. If you think this scenario is different now for whatever reason, you might want to look into the co-incidence of video lottery terminals (lol gambling crack) with usage after paychecks in poor areas of towns: hint hint, VLTs are concentrated in poor areas of town and their usage massively spikes after payday. Everyone has their foibles, and pretending they don't exist because everyone in society should benefit according to some pseudo-protestant merit at the expense of actually helping people is absolutely disgusting.


Just a few things to consider:

1. If people want drugs, they simply sell their food stamps for money, then buy drugs. If someone is actually addicted, then they WILL dupe the system to get what they want. Food stamps do NOT fix this problem.
2. Nearly 10% of the entire US population is on food stamps. The number of these who would tell their family, "screw you, I am buying drugs" is most likely tiny in comparison. But...
3. For all 28 million people on food stamps, there is a LARGE loss to inefficiency every single of month of every single year to every single family.

Neither solution will fix ALL the problems, but one creates a problem for 28 million people every single month while the other is a problem for...maybe 1 million of those? That seems pretty generous.

Also, by your reasoning, we shouldn't provide $$$ payments at any time, whether it be unemployment benefits, or social security, stimulus checks or simple redistributive tax refunds because ANY of those people could go and spend all their money and their check on booze and screw their family over.

The problem with addiction is that you really can't help those people unless you take the children out of the home because the food stamps get sold, the free health care doesn't get used because they don't even take their kids to the doctor. But the fact that these families are in terrible circumstances, doesn't justify screwing over 28 million people and wasting billions of dollars to inefficiency.

Programs like substance treatment programs and social services help families in addiction. Those are the best tools we have as society to deal with these complicated cases.
The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. – Winston Churchill
Jibba
Profile Blog Joined October 2007
United States22883 Posts
Last Edited: 2009-01-31 08:35:30
January 31 2009 08:34 GMT
#427
BTW why the fuck are we still making pennies?
ModeratorNow I'm distant, dark in this anthrobeat
rushz0rz
Profile Blog Joined February 2006
Canada5300 Posts
January 31 2009 08:37 GMT
#428
On January 31 2009 17:34 Jibba wrote:
BTW why the fuck are we still making pennies?


So it is possible to have 21 cents.
IntoTheRainBOw fan~
Savio
Profile Joined April 2008
United States1850 Posts
Last Edited: 2009-01-31 08:38:52
January 31 2009 08:38 GMT
#429
Pennies are ridiculous.

Although there are several other countries that use our currency. Ecuador for example gave up its own currency and uses dollars. Now a penny in Ecuador is worth quite a bit more. I was there when they changed the bus fares from 18 cents to like 23 cents, and the people were all in an uproar.
The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. – Winston Churchill
ahrara_
Profile Blog Joined February 2008
Afghanistan1715 Posts
January 31 2009 08:56 GMT
#430
dude i have a penny jar with like a million pennies dont mess with my penny
in Afghanistan we have 20% literacy rate
L
Profile Blog Joined January 2008
Canada4732 Posts
January 31 2009 21:46 GMT
#431
Also, by your reasoning, we shouldn't provide $$$ payments at any time, whether it be unemployment benefits, or social security, stimulus checks or simple redistributive tax refunds because ANY of those people could go and spend all their money and their check on booze and screw their family over.
Err, no, there's a difference between someone being between jobs or someone getting a tax refund because he's in a lower bracket compared to someone being in a high risk group who can't pay for food.

The problem with addiction is that you really can't help those people unless you take the children out of the home because the food stamps get sold, the free health care doesn't get used because they don't even take their kids to the doctor. But the fact that these families are in terrible circumstances, doesn't justify screwing over 28 million people and wasting billions of dollars to inefficiency.

Programs like substance treatment programs and social services help families in addiction. Those are the best tools we have as society to deal with these complicated cases.
Why do you assume that solutions can't be cumulative and instead must be mutually exclusive? Additionally there's a concrete barrier which you yourself noted between food stamps being traded for money; food stamps typically aren't valued at full price, which means that a household is better off redeeming their stamps for full value before using other streams of revenue. Nevermind that there's a solid barrier in requiring the trades in the first place.

Neither solution will fix ALL the problems, but one creates a problem for 28 million people every single month while the other is a problem for...maybe 1 million of those? That seems pretty generous.
Rates of self destructive addictive behavior are far higher than 1/28, especially in the high risk groups that actually recieve food stamps.

The only people who have 'problems' with the current system are those that eat far less than they're allocated. If that's the case, and the issue is documented and systemic, the solution isn't to revoke distribution of food stamps; its to reduce the amount distributed.
The number you have dialed is out of porkchops.
poilord
Profile Blog Joined January 2007
Germany3252 Posts
February 01 2009 13:43 GMT
#432
Thanks so much for this thread :D
This will help me to prepare for an oral exam tomorrow.
Boblion
Profile Blog Joined May 2007
France8043 Posts
Last Edited: 2009-02-01 14:01:45
February 01 2009 13:52 GMT
#433

A lot of people who are not on food stamps buy drugs. Should we tax them more and then provide them with their needs?

Drugs are illegal period.


I am willing to bet that the few who would buy drugs would be less of a problem than the millions losing potential benefit (that is every person on food stamps in every state, every month).

Benefits of what dude ?
Your government must help you if you are starving, not if you want a new pair of nike or two packs of beer. Like someone said earlier, food stamp prevent somewhat this kind of behaviour because it is harder to change stamps for real money ( you will probably lose value ) then to buy your stuff than if the government give you some $ ...


EDIT: besides, what is to keep them from spending the money they would have spent on food and spending THAT on drugs instead? Food stamps do NOT solve that problem. I still have yet to hear a good explanation for why food stamps is better than giving someone straight up money.


Although it is heavily discussed some say so:

Finally, while the evidence is mixed as to the effect of the food stamps program on weight gain, studies conducted by the USDA on the receipts of food stamps purchases have found that program participants are more likely to spend their income on fruits, vegetables and healthful foods than low-income consumers who do not participate in the program.


Oh and Savio, more calories doesn't always mean junk food...
fuck all those elitists brb watching streams of elite players.
Savio
Profile Joined April 2008
United States1850 Posts
Last Edited: 2009-02-02 02:43:43
February 02 2009 02:40 GMT
#434
But more calories DOES mean higher blood sugar and higher insulin levels which downregulates insulin receptors in fat and muscle as well as adding more fat, both of which increase insulin resistance and predispose to Metabolic Syndrome leading to type II diabetes.

The fact still remains that America suffers much more from too many calories than we do from too little. And poor people and minorities are particularly at risk for the Metabolic Syndrome and diabetes.

EDIT: I think I have said all that can be said regarding food stamps vs. direct monetary transfers. Anything else will just be repetition.
The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. – Winston Churchill
L
Profile Blog Joined January 2008
Canada4732 Posts
February 02 2009 16:22 GMT
#435
But more calories DOES mean higher blood sugar
False. SO FALSE. Like, I'm tearing at the eyes at how false that statement is. Maybe if the caloric intake is in unfavorable carbohydrate poor glycemic index foods, yeah, but those would be the aforementioned 'junk foods'.

The fact still remains that America suffers much more from too many calories than we do from too little. And poor people and minorities are particularly at risk for the Metabolic Syndrome and diabetes.


Is that because of food stamps, or because the cheapest foods are largely those which are not organic, have high fructose corn syrup as their source of sweetener (which largely bypasses most of your body's metabolic control mechanisms), and have significant deficits in many essential nutrients?

Is it because poorer people tend to work longer hours for less income, limiting their time for exercize and cooking? Is it because poorer people tend to have far less ability to access proper health care to recieve preventative treatment or diagnosis?

You've linked Poor people, calories, and health issues together, but attempt to submit that there's a causal relationship between 2 that have no causal relationship. Poor argumentation.
The number you have dialed is out of porkchops.
Boblion
Profile Blog Joined May 2007
France8043 Posts
Last Edited: 2009-02-02 17:05:55
February 02 2009 17:05 GMT
#436
Thank you L.
I don't really know how exactly the food stamps system works but fruits and vegetables should be a priority especially because junk food is cheaper and poor people are less likely to spend money to buy "good" food.
For example there should be more special tickets ( or with higher value ) for "healthy" food.
fuck all those elitists brb watching streams of elite players.
Savio
Profile Joined April 2008
United States1850 Posts
Last Edited: 2009-02-03 06:30:51
February 03 2009 06:29 GMT
#437
I wasn't actually trying to explain diabetes pathophysiology. The overall point I was making is that Americans are too FAT, not too skinny and we certainly don't suffer from not being able to get enough calories so increasing the amount of food eaten can't be an argument for food stamps against direct monetary payments.

Perhaps you could argue that food stamps lead to people eating better kinds of food, but you would have to back that up with data and then show that whatever benefit is gained from it is worth losing a few billion dollars of "lost benefit" to inefficiency every year. A few billion that could have been used in some other way to help poor people.
The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. – Winston Churchill
ToSs.Bag
Profile Joined December 2008
United States201 Posts
February 03 2009 19:08 GMT
#438
On January 30 2009 12:12 Savio wrote:
Show nested quote +
On January 30 2009 11:20 ToSs.Bag wrote:
On January 30 2009 07:53 Savio wrote:
So essentially what you (oneofthem) are saying is that in the long run, we would benefit from subsidizing education more. That may be true, but for the short term (getting out of the current recession, which is what this is all about), I think that you will not see effects from higher education spending. Bush doubled the federal government spending on education and that had no measurable positive effect.

What I say is that we should be clear about what bills the government is passing. If we want to just set up a long term education infrastructure, then lets do it, but don't call that a stimulus bill that will get us out of the current recession. Pass a stimulus bill that makes jobs NOW, and then when things have calmed down, and government revenues are rising again due to economic growth, then lets build the long term infrastructure. Or you could do it earlier, but keep the bills separate so the American people know what they are getting.



It is obvious that with teachers unions with no effect, the lack of choices and incentives for good teachers, the American economy will take forever to come around unless something is done. It all comes down to where the motivation comes from....

Why does America have shitty public schools: Bad incentives for good teachers, bad incentives for schools to get enrollments, and bad incentives for students to do well on the whole.

However, America does have great Universities, as do most countries, but why do they do better? Their incentives to be the best are to be highly accredited professionals and contributors to their subject are a lot higher. Professors make decent money, but This however can make instructors seem distant and too busy to help their students (huge class sizes)

So we are "getting there" but throwing money at a school to not have good education incentives and not giving it to the important people (teachers). Budget isn't a huge concern, but reform in the education system to be more like countries such as Finland and other EU states is what it will end up being about.


Teachers Unions are to blame for the lack of incentives to teach well. Think about what the "job" of a union is....It is to "protect" its members right? Unions inherently seek to:

1. Raise salaries of current teachers
2. Inhibit the firing of union members
3. Lighten the teaching load or burden (make life easier)
4. Raise members benefits

But because of #1, schools can't afford to hire more teachers so the teacher/student ratio rises. Because of #2, bad teachers can not be easily replaced by better teachers. Because of #3, school systems (who already can't fire bad teachers), lose the ability to pressure teachers into improving.

So because of our unions we end up with lower quality, expensive teachers...and not enough of them.

American universities do better than our grade schools because GUESS WHAT...there are no unions messing up the system! That is also one reason why foreign car companies are doing better than our "big 3".

Unions were needed once, but their time is over and they are only holding our car companies back, and our education.

My biggest fear from this new democratic administration is that they will pass laws trying to strengthen unions. Its good politics for them since unions are democratic powerhouses, but it is bad for America.




I don't think I went into this as much as I should have, but yes, Teachers unions are almost entirely to blame for that, but as far as the money not being there, believe me, its there, it is WAY there.... but money isnt the issue.
Person514cs
Profile Blog Joined September 2004
1004 Posts
February 03 2009 20:08 GMT
#439
You guys do realize that our whole civilization is build upon fossil fuels, right? And the fuels are gradually running out. Which makes the factories and farms more expansive to run. Thus less stuff for every one.

Exactly like how all the minerals are running out in a starcraft game.
Peace and love, for ever.
L
Profile Blog Joined January 2008
Canada4732 Posts
Last Edited: 2009-02-04 02:40:39
February 04 2009 02:39 GMT
#440
The overall point I was making is that Americans are too FAT, not too skinny and we certainly don't suffer from not being able to get enough calories so increasing the amount of food eaten can't be an argument for food stamps against direct monetary payments.

Perhaps you could argue that food stamps lead to people eating better kinds of food, but you would have to back that up with data and then show that whatever benefit is gained from it is worth losing a few billion dollars of "lost benefit" to inefficiency every year. A few billion that could have been used in some other way to help poor people.
You mean like the above mentioned pointer towards the increased spending on healthier foods, for instance? How's about the multiplicative effect of prevention dollars on the massive overspending on health care in the united states?

Additionally, the statement that america is fat, the poor people are americans, thus people qualifying for food stamps are fat americans that should spend less money on food because they eat too much is hilarious. Food quality substantially drops as you drop through the economic classes; the classic example is where malt liquor was cheaper than water, so people got fucking hammered 24/7. The entirety of the health issues surrounding golden rice are also relevant. Next up: Potato famine. Etc etc. Add that to the fact that the least expensive food is now generally the most processed food: whole grain breads cost more than white loafs, organic ingredients cost more than inorganic ingredients, natural fruit costs more than imitation fruit.

I wasn't actually trying to explain diabetes pathophysiology.
You were making a hilariously inaccurate post about something you know incredibly little about, and you got called on it. You were, actually, trying to explain the pathophysiology of increased caloric intake as a method of supporting your assertion that food stamps are bad, but you made the assumption that food stamps lead to higher caloric intake without any causal evidence (circumstantial or not), as well as the assumption that higher caloric intake leads causally to increased rates of disease.

Overall: Rofl. Stick to economics.

The number you have dialed is out of porkchops.
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